VARIABLE RATE PERSONAL LOANS Compare low interest rate personal loans

Variable Rate Personal Loans

If you are looking to take out a personal loan and are considering a variable rate then you’ve come to the right place to search, compare and apply for some of Australia’s best variable interest rates on offer.

A variable rate means that the rate is not fixed and that it may change with the movements of the cash rate set by the Reserve Bank of Australia. It’s a popular choice for [personal loans] in Australia but the only way to know if it’s the best option for you is by assessing your financial situation and repayments goals.

To get you started we have listed some advantages and disadvantages of variable rate personal loans:

Advantages of a variable rate

You’re interest rate reflects the current cash rate so if the Reserve Bank lowers interest rates, your lender can pass on the lower rate to you, which will decrease your repayments.

If you would like the option to make extra repayments and pay off the loan early, without the penalties that fixed rate loans can incur, then consider the flexibility of a variable rate loan.

A benefit of being able to make extra repayments and pay off the loan quicker is that it will shorten the total loan term, which means you pay less interest and save on the overall cost of the loan.

Disadvantages of a variable rate

It’s the yin and the yang of finance, if interest rates can fall they can also rise. If the Reserve Bank increases interest rates, you can expect your lender will kindly pass on the rate increase, which will in turn increase your required repayments.

A variable rate personal loan can make it harder for the budget conscience borrower that wants the stability of knowing their repayments won’t change. If there are interest rate changes it will affect your repayments. This is fine if the interest rates drop and lower your repayments but be prepared for an interest rate rise also.

Now that you’ve weighed up the pro’s and con’s you can start comparing some of Australia’s best variable rate personal loans below.

Refine your search

Amount

$

Term

Rate types

VariableFixed

State

Features

No early exit penaltyExtra repayments allowedAvailable for debt consolidation

Include all products without Go To Site links

Providers

BanksNon-banks

Companies

Star ratings

I would like to see how my search results performed in a third party, value-based review

This is an information service. By browsing on the website and/or using our search tools, you are asking RateCity to provide you with information about products from multiple financial institutions. We will try to show you a range of products in response to your request for information. The search results do not include all providers and may not compare all features relevant to you, for further details refer to our FSCG. The rating shown is only one factor to take into account when considering these products. See the rating methodology. We not a credit provider, and in giving you product information we are not making any suggestion or recommendation to you about a particular credit product. If you decide to apply for a product, you will deal directly with a financial institution, and not with RateCity. Rates and product information should be confirmed with the relevant financial institution, and you should review the PDS before you decide to purchase. See our terms of use for further details. This advice is general and has not taken into account your objectives, financial situation or needs. Consider whether this advice is right for you.